Refers to objects that curve outwards. Think of the outside of a ball.

Physical Shape

Some objects, like mirrors, may change appearance of reflected images because of convexity.

Visual Impact

Identify convexity by looking for outward curves in everyday objects, like glasses or bowls.

Convexity means no dents; all angles point outwards. Remember this in geometry class.

For shapes, convexity implies that all interior angles are less than 180 degrees.

In finance, understanding bond convexity helps predict profitability in changing markets.

Convexity in bonds reveals how much a bond's duration changes with interest rate fluctuations.

Convexity in finance can be complex. It's more advanced than just price and yield.